Wednesday, June 6, 2012

When Is A Power of Appointment Used?

Generally a power of apointment is used in estate planning.  For example, a donor may want to give authority to a fiduciary/donee to apoint assets in the fiduciary/donee's discretion to an incapacitated beneficiary.  A power of appointment can be included in a power of attorney, a will, or a trust.  Where a donor does not want to give a fiduciary a power of appointment, it is important to make that desire clear in estate planning documents in order to avoid an IRA argument that the assets the fiduciary is simply managing as a fiduciary are actually part of the fiduciary's estate for estate or gift tax purposes.

3 comments:

Costa Rica Immigration said...

Great Post

How to avoid inheritance tax said...

Nice blog

FindersUK said...

Informative and every institute or trust should know this. I will also consult legal service department for missing beneficiary and related things.